Overnight

About

An Overnight Debt Fund is a type of mutual fund that invests in debt securities with a maturity of 1 day. These funds lend money to institutions for just one day and earn interest on it. As per Securities and Exchange Board of India (SEBI) classification, Overnight Funds must invest only in overnight securities, making them one of the safest debt mutual fund categories.

They are suitable for: –

Corporate managing short-term liquidity
Parking surplus money for very short periods
Emergency funds

Fund Type

Debt

Key Features

Lowest Interest Rate Risk – Since securities mature daily

High Liquidity – Suitable for 1–7 day parking

Stable Returns – Very low volatility

Alternative to Savings Account (for short term)

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

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Over Night Securities

100%

Locked in Period

Nill

Exit Load

Nill

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.